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Tyson Touts Biodiesel Tax Credit In Face Of Opposition

by 5m Editor
1 June 2007, at 10:50am

US - Tyson Foods says scrapping a tax credit would spoil efforts to expand production of more environmentally friendly fuels.

The effort by the Springdale, Ark.-based meat giant and Houston-based ConocoPhillips to make and market biodiesel fuel from beef, pork and poultry fat has recently come under fire. (See Tyson teams up with ConocoPhillips to produce renewable diesel fuel on Meatingplace.com, April 16, 2007.) Opponents, including biodiesel companies and politicians, say the corporations shouldn't reap a $1-per-gallon tax credit because their efforts won't result in more jobs or new plants. Texas Congressman Lloyd Doggett has proposed legislation that would eliminate the perk afforded the Tyson-Conoco team.

But Tyson points to the importance of maintaining incentives that will help spur expansion and availability of alternative fuels like its brand of biodiesel, which it says burns cleaner than conventional biodiesel made from vegetable oils and animal fats and will help supplement the nation's diesel supply.

"Our initiative is about increasing the supply of renewable fuels and contributing to U.S. energy security efforts," Tyson spokesman Gary Mickelson told Meatingplace.com. "We believe our alliance qualifies for a federal production tax credit, which will be based on the number of gallons produced. It is not a jobs credit or an investment tax credit.

Source: CattleNetwork

5m Editor